English

The three committees – Committee of European Securities Regulators (CESR), – Committee of European Banking Supervisors (CEBS), and – Committee of European Insurance and Occupational Pensions Supervisors (CEIOPS). – See AusschussWahn, Banking Supervision, European,…

At the ECB, the three variables – collectively agreed wages, – total hourly labor costs and – compensation per employee. In the respective Monthly Bulletin, the corresponding values are shown comparatively in the text…

In economic terms, the sum of all wage-related expenditure paid by employers to employees in a given period (as to the definition given by Eurostat [the European Community statistical office] the “core expenditure borne…

For the euro area, labor costs are monitored by the ECB according to various aspects (compensation per employee, gross monthly earnings, index of collectively agreed earnings, labor costs per hour), because they are an…

There is an empirically verifiable positive correlation between growth and employment in industrialized countries. If real economic growth is higher than two percent, employment generally increases by around half a percent in the following…

Total number of employed and unemployed persons; reported for the euro area in the respective ECB Monthly Bulletin, annex “Euro area statistics”, heading “Prices, output, demand and labor markets” and observed under the two-pillar…

Expression of the ability of the labor market in an economy (labor market; place where labor is offered and demanded in units of time) to adjust to rising (falling) demand for labor services with…

All measures aimed at influencing the supply of or demand for labor. Because active employment policy usually involves a considerable detour of money flows, its effects are monitored by the central bank. – See…

In general, the production result for a given labor input. There are various methods of measurement. Central banks generally calculate: gross domestic product at constant prices divided by the total number of employees or…

The amount of labor required to produce a unit of output. In economic terms, it is calculated as the ratio (division result) of labor hours to gross domestic product. It is the reciprocal of…

In an economic area, too few means of payment are available to ensure the smooth exchange of goods. – It is disputed whether such a situation can exist beyond a short period of time,…

to move slowly toward a goal): Unless otherwise defined, in connection with payment obligations in foreign currency, this is understood to mean postponing the exchange until the last possible moment. The reason for this…

Named after its chairman, the Belgian Baron Alexandre Lamfalussy, and established by the EU governments in November 2000, this is a four-stage plan aimed at harmonizing legislation in the EU financial market. Stage 1…

A plan for a pan-European central supervisory authority, combined with a uniform European administrative and enforcement law and a European system of legal protection, drawn up by the working group set up by the…

Bank that raises long-term funds by issuing mortgage bonds and lends the money against mortgage collateral – in the past primarily for agricultural land improvement (agricultural melioration), – in reforestation projects and – today…

In earlier times, a community levy to pay the field guard (Feldhüter, Flurer, Pfänder, Bannwart; village watchman in charge of fields, field guard). This guard was responsible for protecting the useful areas (groves, meadows,…

Particularly favorable loan from a bank, usually a state bank, to finance the establishment or improvement of agricultural, village, or even urban) residences. – See land credit institution, refugee settlement loan, crop support loan,…

Particularly favorable loan from a bank, usually a state bank, to finance the establishment or improvement of agricultural, village, or even urban) residences. – See land credit institution, refugee settlement loan, crop support loan,…

In Germany, formerly the central institution of the savings banks under public law; called Girozentrale (giro center) in Bundesbank statistics until 1998. Reprimanded by the European Commission as distorting competition, the Landesbanken are currently…

State institutions founded in German states – Prussia, Saxony, Hesse – after 1850 with the task of promoting agriculture through low-interest loans. The funds required for this purpose were raised mainly through bonds in…

Branch of the Deutsche Bundesbank with head offices and branch offices in the individual federal states. They are part of the European System of Central Banks. – See Bank Deutscher Länder. Attention: The financial…

Usually a major commitment by one or more banks, sometimes in a consortium with building societies and often also as part of a public-private partnership, to construct a building of outstanding architectural design and…

Formerly, in the financial market, an association of agricultural landowners in public standing (of legally authorized public standing) for the purpose of raising funds by issuing agricultural mortgage bonds. – See crop support loan,…

Unless otherwise defined, this means a share. According to the guidelines for printing securities, shares are issued in landscape format DIN A4. An exception is generally made for preferred shares. These are regularly printed…

In the past, payment was demanded mainly by the inhabitants of residence cities in Germany for lighting the city at night, usually between September and April. The proceeds of the levy were used to…

in older documents, a small amount of money, a small sum that is easy to pay. – See chicken feed, préstamo, peanuts. Attention: The financial encyclopedia is protected by copyright and may only be…

In the case of a life insurance policy, the automatic lapse under the terms of the policy if the policy owner falls behind with the premium (the termination of an insurance policy because of…

In the case of a life insurance policy, the automatic lapse under the terms of the policy if the policy owner falls behind with the premium (the termination of an insurance policy because of…

A term that is not clearly defined. The size of a bank can refer in particular to – its total balance sheet volume, – balance sheet sub-items such as deposits and loans; but also…

Shares of first-class, highly capitalized companies (the biggest companies by market capitalization in a given market) with a high degree of recognition and whose price movements on the stock exchange generally indicate the overall…

Shares of first-class, highly capitalized companies (the biggest companies by market capitalization in a given market) with a high degree of recognition and whose price movements on the stock exchange generally indicate the overall…

Loans to a borrower that generally equal or exceed ten percent of a bank’s liable equity capital. In general, a reporting obligation applies to such loans; cf. sections 13-14 KWG. In principle, large exposures…

Payments that – are generally denominated in very large amounts, – are made primarily between banks or between professional financial market participants, and – require rapid and timely settlement. – See capital transfer system,…

In old financial parlance, said for – an excess supply of money or – a significant supply of money in one place. – See money, cheap, money inflation, money hoard, money oversupply, liquidity provision,…

Body set up by the EU Commission in early 2009 under the leadership of Jacques de Larosière, former Managing Director of the International Monetary Fund and later President of the French Central Bank, with…

Additional payment to be made if an amount owed is not paid at the agreed time. – See credit risk, credit, non-performing, penalty. Attention: The financial encyclopedia is protected by copyright and may only…

In the U.S., the possibility for institutional investors to place orders for mutual fund shares after market close, but still getting that day’s earlier price, rather than the next day’s closing price. Reprimanded several…

A term invaded from computer science to denote the period between – the receipt of an order by a bank and – the execution of that order. – See execution, immediate, execution claim, order…

The raising of loans to – expand an existing business, – bridge bottlenecks (bottlenecks: resources whose capacity is unable to match the demand volume required of them) and – carry out acquisitions. As a…

Generic name for the gold coins issued by the members of the Latin Monetary Union. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent!…

At the beginning of the year, Latvia became the 18th member to join the euro area. Because Latvia’s population of about 2 million was small compared with the more than 333 million people living…

Earlier levy that Lauer (= tanners, leatherworkers; tanner) had to pay for the use of water from streams, especially for diverting the water to fill the tanning pit. As a rule, the Weissgerber (also:…

The law requires foreign workers to be paid at negotiated wages for home workers. As a result, companies that can relocate their production abroad are increasingly doing so. This does not mean that cheaper…

In old documents, this refers to the difference between the loan to the debtor – in good, stable money – and the repayment in money that has since lost its purchasing power. Corresponding documents…

In old documents, this refers to the difference between the loan to the debtor – in good, stable money – and the repayment in money that has since lost its purchasing power. Corresponding documents…

In older documents, a guardian’s authority – usually limited to two months – to lend money from his or her ward’s property. – See Gerhabgeld, Gerhabschaftsgeld, Mündelsicherheit, Zuwendung, vormundschaftliche Attention: The financial encyclopedia is…

The provision of debt capital by banks in the course of a leveraged buyout. – Cf. Deutsche Bundesbank Monthly Report of April 2007, p. 16 (overview of financing structure), ECB Monthly Report of November…

A country with a predominant share of the – global – such as the U.S. or the euro zone – or – regional – such as Germany with a share of about a quarter…

Unless otherwise defined in a joint venture, the partner – with the highest capital contribution or – who, on the basis of a contractual agreement with the other lenders, assumes the task of monitoring…

Bank that takes over the organization of a joint commitment in a consortium and, above all, coordinates the financing partners (investors). – In the case of a public-private partnership, the state can also assume…

In 2004, the EU Commission proposed a financial market supervisory body for a group of institutions as a whole, i.e., including all its branches and independent subsidiaries in other EU countries. According to this,…

Deduction on an invoice for loss due to leakage during shipment. – The damage caused by leakage of a liquid, also called Geleck (that which leaks out) in older documents. – See Calfatergeld Attention:…

In the context of supervision, for all measures aimed at eliminating systemic risk in general and a bubble in particular. – One main approach is to require institutions to build up capital cushions during…

Option contracts on shares or, more rarely, on a share index with an expiration period of more than one year and usually up to three years, which are traded as standardized contracts on a…

Companies whose main activity consists in concluding contracts for the leasing of plant, machinery, including vehicles, and – less frequently – consumer durables. – The advantage of leasing – apart from fiscal effects –…

Said of a customer at a bank who is strictly concerned to use services of the institution – only, but not otherwise – at a very low price. – See flipper, account hopper, loss…

Assets that a deceased person leaves to his heirs. – Items that someone does not remove when he or she moves and that may have to be disposed of at great cost (must be…

Body of the ESCB with the objective of preparing, coordinating and monitoring its legal acts. – Cf. Annual Report of the Deutsche Bundesbank 2002, p. 144. Attention: The financial encyclopedia is protected by copyright…

In the financial market, any individual or legal person that has, in the eyes of the law, the capacity to make a contract or an agreement and the abilities to assume an obligation. –…

With regard to the European financial market in general and the euro area in particular, efforts to achieve a level playing field for all financial service providers. However, because financial services are traded around…

In relation to the financial market in general, the expert opinion of a specialist lawyer with regard to an engagement, and here in particular with regard to a contractual commitment in a foreign language…

Risk of loss from hidden legal errors and from out-of-court and court disputes; they are considered part of operational risk. – Hidden legal errors include, for example, the unintentional overlooking of a law or…

A term appearing very frequently in the older literature in various meanings – basic capital, working capital (current operating capita) of an individual merchant or a company; – surcharge on the price at sale…

Also said in older literature for circumscription on a coin (an inscription round a coin). – See alliage, obverse, eteostichon, infrangibility, imperial coin, cat money, tipper, numismatics, knurling, real money, remedium, reverse, fluting, Scheidemünze,…

In mid-September 2008, the investment bank Lehman Brothers, headquartered in Neuyork, became insolvent. The U.S. government refused to come to the bank’s aid. The reason for the government’s refusal to help the bank was…

a person or thing that proves to be sub-standard, defective, unsatisfactory: rivet, bottle, failure]): A bank serves many customers of inferior creditworthiness. – The management – more rarely said in terms of the staff…

In older documents often said for the lender. – See loan, credit. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr.…

Willingness of a central bank to compensate for unforeseen deposit outflows of individual banks (to fund a bank’s activity after all other potential lenders have stopped), albeit at a very high interest rate. –…

Unless otherwise defined, this refers to the granting of a loan (to provide money temporarily on condition that the amount borrowed be returned, usually with an interest fee). Attention: The financial encyclopedia is protected…

In financial terminology, generally any kind of temporary transfer of purchasing power to a counterparty (to give money temporarily on condition that the amount borrowed be returned, usually with an interest fee). – See…

In the wake of the subprime crisis in 2007, this term was coined to describe the fact that banks – instead of granting loans to companies – prefer to build up high-yield securities portfolios…

Banks’ internal policies on lending to business customers and households. The central bank must take any changes in banks’ behavior into account in its monetary policy. For this reason, the ECB uses surveys to…

Statistically recorded and assessed by the central bank, comprising all loans to households, companies and public-sector entities. The respective weight of supply-side factors, such as stricter lending conditions in view of the Basel II…

In general, an asset that serves as the basis for a loan to be granted by the bank. – In particular, pledges – such as land, houses or condominiums – that serve as collateral…

Loans granted by a country’s banks to companies. These are reported to the central banks and monitored by the ECB under the two-pillar principle. – The share of loans to companies as a percentage…

Generally, a commitment – made by a company or public body – under which the company or public body undertakes – that a borrowing subsidiary will meet its obligations under a loan – by…

An instruction to a third party – usually a bank – to make a payment to the holder of the instrument up to a certain amount at the expense of the drawer; also called…

A document by which a line of credit is opened with a third party, usually a bank, a letter of credit. – In the past, such a letter was usually given to traveling salesmen,…

Unless otherwise defined, in the financial market, a bank’s written commitment to participate in an engagement. – See bought deal, co-investment, underwriting, fundrasing, multisourcing, roadshow. Attention: The financial encyclopedia is protected by copyright and…

Interim report by the Board of Management sent out by stock corporations to shareholders (and the business press), usually on a quarterly or semi-annual basis. According to critical evaluations (worldwide!The majority of the communications,…

The movement of large sums of money for relatively small stakes. – When a contract is entered into to deliver or accept a certain commodity under a futures contract, a relatively small payment (margin)…

In a company, the dependence of the profitability of equity on the proportion of debt financing. – A positive leverage effect occurs when the overall profitability of the capital is higher than the interest…

The ratio of a company’s debt to its equity. – The relationship of a company’s debt to its earnings before interest, taxes, depreciation and amortization (EBITDA). – See leverage (effect), leverage ratio, leveraged buy-out,…

leverage ratio and maximum debt ratio as well as debt ceiling): At a bank, the ratio of equity capital to balance sheet assets; more precisely, of core capital and the total of all balance…

Attempt to explain the empirically ascertainable fact that – an increase in volatility on the stock market is accompanied by a fall in share prices, and that – share prices rise when volatility falls.…

In connection with leveraged buy-outs, there are three types of risks that a bank has to bear. – The credit risk due to the financing or the commitment as underwriter; – the absence of…

In general, the acquisition of a company predominantly through debt capital (a substantially debt-weighted financing of an acquisition). – In particular: – a capital management company, usually a vulture fund, – finances the purchase…

With this type of certificate, the investor participates in the performance of the underlying asset with a leverage. – The conventional type of leverage certificate has a base price that is below the market…

A secured loan to companies with a rating below investment grade (non-investment grade: practically below BBB rating). – In line with the higher risk, such loans must also bear a higher interest rate; typically,…

In general, the use of borrowed capital to raise equity capital to finance a transaction in the course of leverage (investing with borrowed money as a way to amplify potential gains, but at the…

Older name for a levy which – the landlord demanded from the tenant (lessee), and which was to be paid either in goods – such as wood, grain, hay – or in money; –…

In the case of a company, all items that provide information on the source of funds and are listed on the right-hand side of the balance sheet (money a company owes its creditors and…

A term that emerged around 2013 in connection with the Single Resolution Mechanism. According to the waterfall principle, shareholders, creditors and depositors are initially liable for very high amounts in the event of the…

In Germany, anyone who suffers losses on the financial market as a result of – grossly negligent, – culpably incomplete or – incorrectly issued ad hoc announcements can claim compensation from the company representatives…